|
WASHINGTON, D.C., Jan. 22 -- The International Finance Corporation (IFC) has approved an investment in South West Pacific Investments Limited (SWPIL) for a hotel project in the South Pacific island nation of Vanuatu. This is IFC's first investment in that country and consists of the rehabilitation of an international standard hotel, thereby improving the ability of Vanuatu -- whose economy is dependent on tourism -- to sustain itself as a resort destination. Known as Le Meridien Port Vila, formerly Royal Palms, the hotel occupies a prime location in Port Vila, the capital of Vanuatu. The project involves refurbishing 150 rooms of an existing hotel, upgrading public areas, and constructing additional bungalows on an adjacent island. The South Pacific Project Facility (SPPF) -- an IFC-managed advisory facility which promotes private sector entrepreneurship in the Pacific island countries -- played a key role in developing this project and in helping the Government of Vanuatu find a suitable buyer for the hotel. In August 1993, the Government asked SPPF to help reverse the rapid deterioration of its first international standard hotel, Royal Palms. After reviewing the project, SPPF resolved that the hotel could be rehabilitated, and undertook to find a buyer -- the Singapore-based company, Hotel Properties Limited (HPL). SPPF acted as an honest broker between the receivers, the buyer, and the Government to conclude the transaction, and also put HPL in touch with IFC to finance the project. The total cost of the project is estimated at A$ (Australian Dollars) 18.3 million (approximately US$13.7 million). IFC's financing consists of a loan for its own account of A$7.3 million (about US$5.5 million). HPL will provide the balance of A$11 million (about US$8.2 million).
SWPIL is owned by HPL Properties (Australasia) Pte Ltd., which in turn is owned by HPL, whose assets include a number of international standard hotels, retail chains, and travel services. Meridien S.A. has been appointed as the hotel's manager. The marketing forces of HPL and Meridien, and the Government's commitment to support and promote tourism with the necessary infrastructure are expected to clinch the project. Tourism is Vanuatu's most important source of foreign exchange earnings and the hotel will meet the demand for high quality accommodation and also strengthen the country's overall attractiveness as a tourist destination. The project is in line with a key developmental priority of the World Bank Group which is to focus on tourism, an industry where Vanuatu has a comparative advantage. Mr. Harold Rosen, Divisional Manager for Southeast Asia and the Pacific in IFC's Asia Department, said, "IFC's assistance to this project will create jobs as well as stimulate foreign exchange earnings and related business opportunities for local firms. It will also enhance Vanuatu's competitiveness as a resort by encouraging better infrastructure, more air connections, and high budget tourists." "The project is also an excellent example of how SPPF acts as a facilitator in turning this into a viable deal, both for Vanuatu and for IFC," added Mr. Rosen. SPPF's principal donors are Australia, Canada, Japan, New Zealand, Western Samoa, Fiji, and IFC. With an office in Sydney, Australia, SPPF works in nine South Pacific Island countries which are members of IFC -- Fiji, the Federated States of Micronesia, Kiribati, Marshall Islands, Papua New Guinea, Solomon Islands, Tonga, Vanuatu, and Western Samoa. The December 1995 meeting of SPPF donors in Auckland, New Zealand brought to a close the first five-year phase of SPPF and confirmed financing for a second five years of activities, beginning January 1996. During its second phase, SPPF will aim to broaden its developmental impact by selectively taking on technical assistance and training activities. SPPF also works closely with the recently-established Pacific Islands Investment Fund, which makes IFC venture loans and quasi-equity investments in small private enterprises in the Pacific. IFC is also assisting Vanuatu by advising on foreign investment through ongoing advisory work by the Foreign Investment Advisory Service -- a joint venture between IFC and the World Bank -- which advises the Government on policies, regulations, and promotional efforts relating to foreign investment. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
|
